1 Preparing VPA in Indonesia through multi-stakeholders process Presented to Illegal Logging Update and Stakeholder Consultation Chatham House, London 26 January 2007 by Dr. Hadi Daryanto, the Ministry of Forestry of the Republic of Indonesia

2 SINCE THE (FLAG) FOREST LAW ENFORCEMENT & GOVERNANCE EAST ASIA MINISTERIAL CONFERENCE HELD IN BALI, INDONESIA IN SEPTEMBER 2001, INDONESIA HAS DONE FOLLOWING STEPS

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4 LETTER OF INTENT between THE MINISTRY OF FORESTRY OF REPUBLIC OF INDONESIA and THE USDA FOREST SERVICE OF UNITED STATES OF AMERICA regarding COOPERATION IN SUSTAINABLE FOREST MANAGEMENT WAS SIGNED IN JAKARTA ON 13 th NOVEMBER 2006 ABOVE HAS BEEN FOLLOWED BY MEMORANDUM OF UNDERSTANDING (MOU) between THE GOVERNMENT OF REPUBLIC OF INDONESIA and THE UNITED STATES OF AMERICA on COMBATING ILLEGAL LOGGING & ASSOCIATED TRADE SIGNED ON 17 th NOVEMBER 2006.

5 ACKNOWLEDGING THE EFFORTS BY THE EUROPEAN UNION TO COMBAT ILLEGAL LOGGING AND ASSOCI- ATED TRADE UNDER THE EUROPEAN UNION FOREST LAW ENFORCEMENT, GOVERNMEANCE AND TRADE (FLEGT) ACTION PLAN WAS ADOPTED IN MAY 2003, OUR PRESIDENT ISSUED PRESIDENTIAL INSTRUCTION NO. 4, ON 18/MARCH 2005 WHICH INVOLVES 18 GOVERNMENT’S AUTHORITIES TO STRICTLY WATCH AND CONTROL THE LEGALITY OF WOOD PRODUCTS. ACKOWLEDGING THE FLEGT-VPA INITIATIVE AND INTERNAL CONSULTATION AMOUNG MINISTRY OF FORESTRY STAFFS AND THEN STIPULATED A NATIONAL WORKING GROUP AND VOCAL POINT FOR PREPARING VPA MULTI STAKE HOLDERS DIALOG ON THE BEGINING 2006

6 Dialogue Process 1 st National Workshop: 12 April st National Workshop: 12 April 2006 Dissemination and multi-stakeholders consultation at the regions (Sumatra and Kalimantan): August 2006 Dissemination and multi-stakeholders consultation at the regions (Sumatra and Kalimantan): August 2006 Discussion series Discussion series o Clarification from EU as response of the 1 st National Workshop (July 2006) o Discussion with DfID representative (Sep 2006) o Discussion with EU Representative in Malaysia (Sep 2006) o Discussions on preparing of the joint statement on FLEGT-VPA 2 nd National Workshop: 21 November nd National Workshop: 21 November 2006

7 Jakarta, 12 April 2006 Purpose: formulating on consolidation of multi-stakeholders opinion regarding FLEGT-VPA proposal from EU Participants: government, private sector, national and local NGOs Results: o Stakeholders aware that VPA is a good initiative for combating illegal logging, however, there are some concerns, such request for reciprocal commitment, non discriminative, etc o schedule for further dialogue process agreed, such as dissemination in the regions o Clarification from EU 1st National Workshop Dialogue Process …

8 Dissemination and multi-stakeholder consultations in Kalimantan and Sumatra Regions Pontianak, West Kalimantan, 24 August 2006 Pontianak, West Kalimantan, 24 August 2006 Jambi, Sumatra, 30 August 2006 Jambi, Sumatra, 30 August 2006 Participants: local government representatives, civil societies, private sectors Participants: local government representatives, civil societies, private sectors Result: no objections on initiatives to achieve sustainable forest, however, there are internal issues in combating illegal logging that should be solved, such community welfare, law enforcement Result: no objections on initiatives to achieve sustainable forest, however, there are internal issues in combating illegal logging that should be solved, such community welfare, law enforcement Purpose: disseminate the FLEGT-VPA to relevant stakeholders in the regions; to obtain response for Indonesia’s position in the preparation to entering the negotiation process Purpose: disseminate the FLEGT-VPA to relevant stakeholders in the regions; to obtain response for Indonesia’s position in the preparation to entering the negotiation process Dialogue Process …

9 2 nd National Workshop Jakarta, 21 November 2006 Purpose: to obtain inputs on important issues to be included in the negotiation list and composition of the negotiation team Participants: government, private sector, national and local NGOs Results: Indonesia is ready to enter the negotiation process; list of negotiation points developed; list of negotiator’s proposed Dialogue Process …

Follow Indonesian legality regulations, and should be internationally recognized, including by EU 2. 2.Acknowledge among standards of the different VPA countries (to avoid that different standards may lead to different costs for industries) 3. 3.Be non discriminative on trade treatment among VPA signatory countries 4. 4.Use independent monitoring which would be negotiated and agreed upon by both parties 5. 5.Reciprocal obligations by EU (commitment not to import illegal products; sanctions on importers procuring illegal timber from a VPA country) Dialogue Process … Result from multi-stakeholders consultations: basically Indonesia welcomes efforts for combating illegal logging and associated trade, including the Voluntary Partnership Agreement. However such efforts should:

11 The Hon. M.S. Kaban, Minister of Forestry Indonesia met Commissioners Louis Michel and Stavros Dimas, responsible for Development and Environment, respectively, in Brussels 8 January They agreed to initiate formal negotiations towards conclusion of a voluntary partnership agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT), which will provide assurance that Indonesian forest products imported to the EU are verified to be legal. The agreement will also provide for cooperation, including capacity building, market and technical studies and knowledge-sharing. BRUSSEL 8 JANUARY 2007: Indonesia and EU agree to tackle illegal logging through a FLEGT Partnership.

12 Dialogue Process EC – Indonesia Joint Statement on FLEGT-VPA Brussels, 8 January 2007 Negotiation Process Current Status

13 Joint Statement EC – Indonesia, Brussels, 8 January 2007 Current Status to Next Steps Current Status to Next Steps Further discussion on list of negotiation team Further discussion on list of negotiation team Further discussion on list of issues to be discussed during negotiation Further discussion on list of issues to be discussed during negotiation Conducting study on pros and cons of VPA for Indonesia’s benefits Conducting study on pros and cons of VPA for Indonesia’s benefits

14 Thank you